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In the history of physics, the concept of entropy developed in response to the observation that a certain amount of functional energy released from combustion reactions is always lost to dissipation or friction and is thus not transformed into useful work. Early heat-powered engines such as Thomas Savery's (1698), the Newcomen engine (1712) and Nicolas-Joseph Cugnot's steam tricycle (1769) were inefficient, converting less than two percent of the input energy into useful work output; a great deal of useful energy was dissipated or lost. Over the next two centuries, physicists investigated this puzzle of lost energy; the result was the concept of entropy.
In the early 1850s, Rudolf Clausius set forth the concept of the thermodynamic system and posited the argument that in any irreversible process a small amount of heat energy δQ is incrementally dissipated across the system boundary. Clausius continued to develop his ideas of lost energy, and coined the term entropy.
Since the mid-20th century the concept of entropy has found application in the field of information theory, describing an analogous loss of data in information transmission systems.